State drug agency keeps within budget

Pharmac finished the year within budget according to its annual report.

The State drug-buying agency spent $634.4 million - just within its total budget of $635 million.

Chief executive Matthew Brougham says managing spending is made difficult by having to balance the demands of investing in new medicines, while pharmaceutical companies want to raise prices on already-funded medicines.

Despite the constraints, the agency says it funded new medicines for mental health, migraines and breast cancer.